Power utility EPHZHB has warned the Government of the Federation of Bosnia and Herzegovina (FBiH) of high risks to the stability of supply to almost 200,000 consumers and urged it to ban electricity exports. Elektroprivreda BiH (EPBiH), the other state-owned power producer in FBiH, rejected EPHZHB’s request to buy its surplus electricity.
Bosnia and Herzegovina is the biggest electricity exporter in the Western Balkans, but the energy crisis and the drought, which reduced hydropower plant output, jeopardized the supply to some customers.
EPHZHB told the Government of FBiH, as reported by Klix.ba, that the supply to all consumers has recently become uncertain, citing low water levels as one of the reasons. Of note, the company supplies electricity to almost 200,000 consumers, of which 180,000 are households. Its market share in 2020 was 20% while EPBiH held 78%.
EPHZHB claims its ability to import electricity is limited
As one of the solutions, EPHZHB proposed a ban on the export of electricity from FBiH outside of Bosnia and Herzegovina’s borders until the end of September, either directly or indirectly, through trading firms. It also suggested to the entity government to oblige EPBiH to offer all surpluses in August and September to EPHZHB at market prices or at prices that would be determined by the government itself, as the majority owner of both power companies, with delayed payment of at least 90 days.
The company also pointed out that it is struggling to import electricity, arguing the available quantities on the market are decreasing every day.
EPBiH: we have only 100 MW in reserve
Elektroprivreda BiH blamed the issue on last year’s decision by the Parliament of FBiH to limit electricity price increases to 20%. The utility added that it has implemented measures to prevent such consequences on its operations.
EPBiH will provide enough electricity for its consumers
EPBiH said it would provide sufficient volumes of electricity to all its consumers, especially during the winter, and warned a significant increase in consumption can be expected due to global turmoil.
However, EPBiH stressed that it wouldn’t be able to meet EPHZHB’s requested baseload electricity volume in August and September. Among other reasons, it pointed out that its system reserve production capacity is limited at 100 MW. It means that if one of the units at its thermal power plants malfunctions, it would have to buy electricity on the market at extremely high prices.
The level of the Jablanica reservoir is one meter lower than planned
EPBiH’s strategic goal is to consolidate coal production to enable the smooth operation of the power plants that use the fuel and to enable stable supply for the upcoming winter season.